The ROI of Employee Appreciation
The value of employee appreciation cannot be understated. When employees see that their hard work is recognized, they'll be more motivated to continue to improve and grow on the job. Employee appreciation impacts engagement and productivity levels. If ignored, workers could become disengaged, opening up the company to financial risk.
The Cost of Underappreciated Employees
Although base compensation and benefits may motivate workers to come into the office every day, gestures of genuine appreciation can inspire them to high quality performance. If a company's employees trudge to work only to receive grumbles from their managers, they may become disengaged and apathetic. That behavior, in turn, becomes a financial risk to the company. In fact, Glassdoor reported that disengaged employees cost the U.S. between $450 billion to $550 billion each year.
At an individual level, Gallup found that disengaged employees cost their employers about $3,400 per $10,000 of salary. So, if an employee earning $50,000 a year becomes disengaged, he or she could cost the company roughly $17,000 annually.
When employees become disengaged, they lose the ability to perform well on the job. Customer service declines, and productivity levels drop. According to HR specialists CBR, lack of motivation is one of the early warning signs of employee disengagement. Individuals who aren't motivated quickly become unproductive and may even show increasingly negative emotions at the office. This behavior can set off a chain reaction, especially if mid-level managers become less engaged in their duties.
One of the most damaging effects of disengagement is an increased rate of absenteeism. An intentional absence from work is a clear sign of decreased motivation. And it's behavior that can truly damage a company's bottom line. Investopedia reported that in the professional sector alone, the annual cost of lost productivity due to absenteeism is roughly $24.4 billion. Among managers and executives, absenteeism costs U.S. companies $15.7 billion annually. Given enough time, absenteeism could become employee turnover. These days, the cost of turnover is high. Dale Carnegie Training reported that $11 billion is lost annually due to employee turnover.
In other words, business leaders have a financial responsibility to brighten their employees' days. A little more appreciation can go a long way in terms of engagement. An investment in your employees as emotionally complex individuals will show that your company appreciates the time and energy they bring to the table every workday.
The ROI from Employee Gifts
Engagement is a spectrum. At one end, disengaged employees drain company resources and create financial risk. At the opposite end, engaged employees generate positivity, productivity and profits. According to Gallup's 2017 State of the American Workplace Report, the behaviors of engaged workers result in 21 percent greater profitability. Those behaviors include greater attention to detail; better understanding of customer needs; and increased observance of processes, systems and standards. The report went on to explain that companies with engaged workforces have higher earnings per share. RecruitLoop reported companies that increase engagement investments by just 10 percent can see profits increase by $2,400 per employee, on average.
Companies that celebrate their employees and show appreciation for hard work with employee gifts receive a return on their investment in the form of higher engagement. In addition to lower levels of absenteeism and increased productivity, employee engagement can decrease turnover rates. And engaged workforces report 48 percent fewer safety incidents, according to the Harvard Business Review. From any angle, high engagement is good for business.
To achieve these results, company leaders need to look for ways to support and acknowledge their employees. In addition to holiday bonuses and annual raises, leaders can utilize other opportunities throughout the year to motivate their workers with non-cash rewards. In fact, there's an entire day devoted to doing just that. The first Friday of March is Employee Appreciation Day, and it's the perfect opportunity to take some time out of the work year to say thank you to the people who are responsible for the success of your company.
Every year, celebrate Employee Appreciation Day by rewarding your team members with gifts that acknowledge their excellence at work. By showing that your company appreciates not only employee tenure but also quality of performance, you'll create a positive work environment. When your employees feel valued, they're more likely to be engaged with their daily tasks.
Ways to Engage & Celebrate Employees
Show your employees how much you appreciate them in the following ways:
- Bring in the caterer: Everyone loves a free meal. Poll your team about favorite local restaurants, and hire the top choice to cater lunch. Remember to consider everyone's dietary habits and plan to offer vegetarian, vegan and gluten-free options. Always be sure to ask about allergies before bringing food into the office. Larger companies with multiple departments should let each section leader plan for his or her team's celebratory lunch.
- Offer thank you gifts: Sometimes, a thank you is best said with a gift.
Offering useful items like water bottles and paperweights can show that the company is actively
supporting its employees. Fun gifts like desk accessories, stress balls and candy can remind
employees to stop and take a breath when they're feeling tired or anxious. Gift cards and other
non-cash rewards can motivate better performance at work and promote positive
attitudes.
You can also take some time to have a small award ceremony that recognizes the achievements of dedicated workers. Personalized trophies and plaques are an excellent way to show how much your company values the individual efforts of hardworking employees. These items can take up a place of pride in the office and motivate others to work harder. - Have an on-site wellness day: When your employees get stressed out, it affects
both their work and their physical health. If your company has recently gone through a busy
period, considering rewarding everyone with a day of self-care. Health is important, and when
your employees take good care of themselves, it could reduce rates of absenteeism.
Consider hiring massage therapists to provide therapeutic sessions throughout the day. Or bring in a yoga instructor to guide your employees through relaxation exercises. Giving out scented candles or herbal tea can also help employees relax and take a much-needed break to recharge their batteries. - Take a field trip: Sometimes, the best way to show your appreciation is to take
some time away from work with an employee field trip. The possibilities are really endless.
Depending on the interests of your team members, you could spend an afternoon at the bowling
alley, tour a local brewery, visit a museum or do some charity work.
An outing gives your employees an opportunity to let off a little steam and become closer as a team outside of the traditional work environment. Consider holding the event during company hours, not after work, to show your employees that you respect their personal time. - Write personalized notes: One of the best ways managers can show their appreciation is to write personalized letters for each employee. This shows that managers recognize the unique abilities of each worker and understand that everyone makes a one-of-a-kind contribution to the team. Department heads should handwrite their letters, if possible, for an extra personal touch.
How to Host a Successful Employee Appreciation Day
Every year, Employee Appreciation Day takes place to remind company leaders of the importance of recognizing their hardworking staff. Ensure that you're taking advantage of the day to boost morale and show your employees that you've taken note of their dedication, contributions and progress.
Even the best of the best agree that appreciating employees is crucial to a strong work ethic: A 2013 survey by the Aberdeen Group found that 60 percent of Best-In-Class organizations thought employee recognition to be one of the most important drivers for successful individual work performance.
Employees find recognition to be a great source of motivation as well. For many, it even serves as one of the primary reasons for staying with their employers. A survey by Gallup found that the No. 1 reason Americans leave their jobs is because they don't feel appreciated. In fact, the largest concern among human resources departments in 2015 was employee satisfaction and engagement, as many companies continued to fight high turnover rates, according to a survey of 3,300 worldwide organizations by consulting firm Deloitte.
Steps to Pulling Off A Successful Employee Appreciation Day
If you're looking for strategies to recognize your staff, offering a catered luncheon for employees is one of the simplest yet most effective ways to keep your team happy and reward them for a job well done. A company lunch encourages socialization and bonding among staff while enabling business leaders to thank individual team members and the company as a whole at a single event.
1. Set aside money in your budget
When you plan your company budget at the start of every year, set aside money for employee recognition expenditures. You won't want to have to sacrifice these costs because you don't have the funds due to poor planning-without employee recognition, your company is at risk of seeing a loss in engagement and productivity. Give staff a reason other than a paycheck to work hard. Have money ready to invest in events like employee lunches.
2. Send out sufficient notice
In an email or company announcement, inform staff that they will be receiving a free lunch in celebration of Employee Appreciation Day, including the date and time of the event. This will allow them to plan ahead, whether it means leaving that hour open or planning to come into the office that day if you allow work from home privileges.
3. Leverage vendor loyalty
A lot of companies have a local restaurant that they turn to for lunch meetings and company events. It often pays off to use the same establishment for catered functions, as many restaurants offer discounts for loyal customers. You can also rest assured that the food is high quality and the service is reliable.
4. Choose a menu for everyone
Consider all types of diets and food preferences as you submit your order entry. Send out an email a few days before the event and ask if anyone has any food allergies. Have a vegetarian dish available so everyone's happy.
Incorporate an Awards Ceremony
In your invitation, note that you will be recognizing workers who have showed exceptional progress and work ethic. Even naming a few people in particular can make attending the event more enticing, encouraging the winners' colleagues to show up for support. Make each reward personal with a gift. For example, consider rewarding a standout employee whose known for his collaboration skills with a framed desktop print that celebrates teamwork and reflects on his contributions to the company. Or, show your most energetic and enthusiastic staff member your thanks for his positive attitude with a coffee mug that celebrates his one-of-a-kind mentality. Employee awards are another classic and meaningful gift that will last a lifetime.
While giving special gifts to your most valuable employees is important, providing small tokens of thanks to everyone on your team can also go a long way. In fact, offering employee rewards can reduce turnover rates, according to statistics from digital strategy company Reload Media. Practical items your staff can use at work, such as a mousepad or highlighter set, won't only show your appreciation, but serve as a daily reminder that their had work is recognized.
How to Deliver a Motivational Speech to Your Team
As a leader of your business, thanking and motivating employees personally through a quick speech at your company lunch can benefit morale. To make sure you're delivering an inspiring speech that's going to keep your team moving through even the biggest of challenges, make sure you cover these bases.
Lay out specific points ahead of time Chances are, you have a few specific points you want to get across during your speech. These may include providing a brief summary of the company's goals and noting certain benchmarks your team has met and how they've helped the business. Highlight these beforehand, so you don't end up forgetting to mention something important. This will also help keep your speech short and sweet.
Emphasize success through real stories
A 2015 survey by Gallup showed that employees are 59 percent more likely to be engaged with their work when their leaders are. A passionate, engaged leader will take note of both individual successes and those made by the company as a whole. Show your enthusiasm and engagement by mentioning two or three specific stories where your team excelled and individual achievements were made by staff members. This will make it known that you recognize your business wouldn't be where it is without this commitment from its employees and that good work never goes unnoticed.
Make goals personal and specific
Talking about the potential you see in your company is a key point to make in your speech. However, it's not going to hit home for your audience unless you make it personal. Explain that you're excited about how specific products or projects are going to drive the company's success and how. Emphasizing your confidence will also show your staff the trust and faith you have in them. Explain that you have high expectations because you know you have a team that's talented enough to not only meet, but exceed them.
Show your team you love leading them
According to a 2015 survey by human resources consulting firm Mercer, only 53 percent of the 1,520 employees surveyed believed they would be at the same company in a year, not because they didn't like the job itself - 28 percent said they had considered applying for a similar role with a competitor - but because of poor leadership.
You're the one your employees are looking to for direction and motivation. After you've expressed clear goals for your team and recognized key players in the company's success, it helps to note how proud you are of your staff as a whole, the confidence you have in them and their abilities, and how excited you are to continue leading them.
